McKinsey & Company 1
The invasion of Ukraine in February 2022 has had deep human, as well as social and economic,
impact across countries and sectors.
The implications of the invasion of Ukraine are also rapidly evolving and inherently uncertain.
As a result, this document and the data and analysis it sets out, should be treated as a best-efforts
perspective at a specific point of time, which seeks to help inform discussion and decisions taken
by leaders of relevant organizations.
The document does not set out economic or geopolitical forecasts and should not be treated as
doing so. It also does not provide legal analysis, including but not limited to legal advice on
sanctions or export control issues.
The document should be treated as confidential and should not be shared without written approval
from McKinsey & Company.

McKinsey & Company 2
Four emerging consumer themes in April 2022
1
Sources of concern
The greatest concerns identified by
consumers in Italy, as across Europe,
are rising prices and the invasion of
Ukraine. With each concern cited by
32%, these have overtaken COVID-
19 as a top concern.
Of the two top concerns, rising prices
are disproportionately cited by
younger and lower-income
consumers, while the invasion of
Ukraine is more often cited by those
with high incomes
3
Price increases affecting
purchase intent
Consumers indicate they perceive
the highest price increases for
groceries and fuel, products also
associated with a strong increase in
spend
Spend on food and on energy,
transport, and fuel has grown
considerably and is expected to rise
further
4
Emerging demand shifts
25% of consumers, including 46%
of Gen Z, changed their retailer in
the last four to six weeks, while
44% changed brands for groceries
or another essential product
A trade-down trend is evident in
choices of retailers and brands,
especially for food, household
products, and skin care; the
strongest drivers of these choices
are price, value for money, and
availability
2
Confidence in economy
Optimism about an economic
recovery is at lower levels than it has
been throughout the COVID-19
pandemic (38% pessimistic versus
12% optimistic)
63% of consumers have a pessimistic
view of the Italy’s current economy,
an opinion that is even more likely
among those with low incomes (69%)
and those who say their top concern
is unemployment (76%) or rising
prices (69%)
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years

McKinsey & Company 3
Despite the pandemic’s continuing grip on societies in Europe,
rising prices and invasion of Ukraine have now by far overtaken
COVID-19 as top concerns for consumers
Germany UK Italy
France2 Spain
1. Q: Which of the following is your top concern today? Bars may not sum to 100%, due to rounding.
2. For France, political insecurity (9%) and immigration (8%) are concerns mentioned by more than 5% of consumers.
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
12
5
7
8
24
44
Europe 5
9
21
11 9 8
7
8
6
11 14
8
6
7
11
7
34
18
15
32
21
40 44
60
32
47
2
4
4
3
3
Rising prices
Invasion of Ukraine
COVID-19 pandemic
Unemployment/job security
Extreme weather events
Other
Top source of concern1
% of respondents

McKinsey & Company 4
The COVID-19 pandemic and unemployment are not Italian
consumers’ top concern but still weigh on the minds of many
74
62
48
37
31
17
14
13
3
1
Invasion of Ukraine
Immigration
Brexit
Rising prices
COVID-19 pandemic
Unemployment/job seurity
Political uncertainty
Extreme weather events/climate change
Cost/accessibility of healthcare
Other
1. Q: What are the greatest source(s) of concern for you right now? Please select the top 3.
2. Q: Which of the following is your top concern today?
Top sources of concern today
% of respondents
32
32
11
11
6
3
2
2
1
1
Among top 3 sources of concern1 Top source of concern2
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years

McKinsey & Company 5
Rising prices most often concern millennials and those with low or
middle incomes; concern about Ukraine more often affects high-
income consumers and baby boomers
9
6
11
11
32
32
Overall
Top source of concern1
% of respondents
1. Q: Which of the following is your top concern today? Figures may not sum to 100%, because of rounding.
12 8 7
5
6 5
8
8 16
12
11
11
26 31
37
37 36
24
Low income Middle
income
High income
6 9 10 7
6
6 6
6
16 14 11
7
16 10
10
12
30
33
32
31
26 28 31
38
Gen Z Millenials Gen X Baby
boomers
Split by generation
Split by income
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years
Other
Rising prices
Invasion of Ukraine
COVID-19 pandemic
Extreme weather events
Unemployment

McKinsey & Company 6
Baby boomers and high-income consumers rank the invasion of
Ukraine as a top three concern about as often as price increases
Top 3 sources of concern1
% of respondents
1. Q: Which of the following is your top concern today? Figures may not sum to 100%, because of rounding.
74
62
48
37
31
17
14
13
3
1
Unemployment/job security
COVID-19 pandemic
Rising prices
Invasion of Ukraine
Extreme weather events/climate change
Political uncertainty
Cost/accessibility of healthcare
Immigration
Brexit
Other
High
income
Middle
income
Low
income Gen Z Millennials Gen X
Baby
boomers
75
55
46
46
31
19
14
12
2
1
76
64
47
34
34
16
13
13
2
2
68
70
52
28
27
16
16
17
5
1
74
53
45
49
48
10
9
9
1
1
72
55
48
46
31
17
11
11
7
1
78
63
44
37
25
21
14
16
2
1
73
71
51
26
31
14
18
14
1
2
Split by generation
Split by income
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years

McKinsey & Company 7
Four emerging consumer themes in April 2022
1
Sources of concern
The greatest concerns identified by
consumers in Italy, as across Europe,
are rising prices and the invasion of
Ukraine. With each concern cited by
32%, these have overtaken COVID-
19 as a top concern.
Of the two top concerns, rising prices
are disproportionately cited by
younger and lower-income
consumers, while the invasion of
Ukraine is more often cited by those
with high incomes
3
Price increases affecting
purchase intent
Consumers indicate they perceive
the highest price increases for
groceries and fuel, products also
associated with a strong increase in
spend
Spend on food and on energy,
transport, and fuel has grown
considerably and is expected to rise
further
4
Emerging demand shifts
25% of consumers, including 46%
of Gen Z, changed their retailer in
the last four to six weeks, while
44% changed brands for groceries
or another essential product
A trade-down trend is evident in
choices of retailers and brands,
especially for food, household
products, and skin care; the
strongest drivers of these choices
are price, value for money, and
availability
2
Confidence in economy
Optimism about an economic
recovery is at lower levels than it has
been throughout the COVID-19
pandemic (38% pessimistic versus
12% optimistic)
63% of consumers have a pessimistic
view of the Italy’s current economy,
an opinion that is even more likely
among those with low incomes (69%)
and those who say their top concern
is unemployment (76%) or rising
prices (69%)
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years

McKinsey & Company 8
Almost two out of three consumers are negative about their own
country’s current state of the economy
55 58 61 63 67
32 29 24 26 22
13 13 15 11 11
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
61
27
13
Positive
Neutral
Negative
Net confidence2 −42 −56
−52
−45 −46
−48
1. Q: How are you feeling about [COUNTRY]'s economy today? Rated from 1 “very positive” to 5 “very negative.” For visualization, we merged the categories “very positive” and
“positive” as well as “very negative” and ”negative.” Figures may not sum to 100%, because of rounding.
2. Calculated by subtracting all "negative" answers from all "positive" answers.
Confidence in own country’s current state of the economy1
% of respondents
Germany UK Italy
France Spain
Europe 5

McKinsey & Company 9
High-income consumers are most confident on an economic bounce
after crisis; by age, baby boomers are most pessimistic
63
26
11
Neutral
Overall
Positive
Negative
Confidence in own country’s current state of the economy1
% of respondents
69 63 52
26 26
25
22
11
6
Low (<25K) Middle
(25K–50K)
High (>50K)
64 58 59 68
26 28 26
24
13 15
Gen X
9
Gen Z Baby boomers3
Millennials
8
By income2
By generation
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years
1. Q: How are you feeling about [COUNTRY]'s economy today? Rated from 1 “very positive” to 5 “very negative.” For visualization, we merged the categories “very positive” and “positive”
as well as “very negative” and ”negative.” Figures may not sum to 100%, because of rounding.
2. Income brackets are shown in € for France, Germany, Italy, Spain; for UK, the same brackets were used with £.
3. Baby boomers includes silent generation.

McKinsey & Company 10
Consumers worried about price increases and unemployment are
the most pessimistic on their own country’s current economy
69
60
52
76
50
22
29
31
18
38
9 12 18
6
12
Invasion
of Ukraine
COVID-19
pandemic
Rising prices Unemployment Extreme
weather events
Confidence in own country’s current state of the economy1
% of respondents by top concerns
Net confidence2 −60 −38
−71
−48 −34
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
63
26
11
Overall
Positive
Neutral
Negative
−52
1. Q: How are you feeling about [COUNTRY]'s economy today? Rated from 1 “very positive” to 5 “very negative.” For visualization, we merged the categories “very positive” and
“positive” as well as “very negative” and ”negative.” Figures may not sum to 100%, because of rounding.
2. Calculated by subtracting all "negative/very negative" answers from all "positive/very positive" answers.

McKinsey & Company 11
Supply-related risks are the most common concerns for consumers
with a negative outlook on the economy
1. Q: You mentioned that you are feeling negatively about [COUNTRY]’s economy in light of the Ukraine invasion. Which of the following topics are you most
uncertain about? Please select up to 3. Figures may not sum to 100%, because of rounding. Bars only show reasons with agreement >20%.
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
47
42
39
31
27
26
24
16
12
9
3
0
Interruption of gasoline supply
Unemployment rates/job security
Supply chain shortages
Risk of further escalation of the war
Energy shortages
Food shortages
Impact of influx of refugees
Rising interest rates
Risk of nuclear disaster
Uncertainty on the stock market
Restrictions on international travel
Other
41
50
53
33
19
22
14
23
14
8
2
1
45
44
36
29
22
33
20
17
12
10
3
1
53
40
43
30
19
31
33
12
11
7
3
0
49
32
41
29
37
20
23
15
13
11
3
0
46
44
24
34
39
24
28
11
12
10
2
0
Top 3 reasons for negative view on economy1
% of respondents who perceived the current status of economy and/or the economy's outlook as negative
Germany UK Italy
France Spain
Europe 5

McKinsey & Company 12
30 30 32 30 31 31
24
17
25
38
52 55 53 55 54 53
55
49
51
50
18 15 15 15 14 16 21
34
24
12
Mar 2020 Apr 20223
Mar 2022
Oct 2021
Nov 2020
Sept 2020
May 2020
Apr 2020 Feb 2021
June 2020
Optimistic: The
economy will rebound
within 2–3 months and
grow just as strong as or
stronger than before
COVID-19
Neutral: The economy
will be impacted for 6–12
months or longer and will
stagnate or show slow
growth thereafter
Pessimistic: COVID-19
will have lasting impact
on the economy and
show regression or fall
into lengthy recession
Source: McKinsey & Company Europe Consumer Pulse Survey, 3/22–3/29/2022, n = 5,028 (France, Germany, Italy, Spain, UK); 10/15–10/22/2021, n = 5,081 (France, Germany, Italy, Spain, UK); 2/23–2/27/2021, n = 5,139 (France, Germany,
Italy, Spain, UK); 11/9–11/16/2020, n = 5,232; 9/24–9/27/2020, n = 5,338 (France, Germany, Italy, Spain, UK); 6/18–6/21/2020, n = 5,645; 5/21–5/24/2020, n = 5,641; 4/30–5/03/2020, n = 5,631; 4/16–4/19/2020, n = 5,623; 4/2–4/5/2020, n =
5,645, 3/26–3/29/2020, n = 5,614; 3/20–3/23/2020, n = 5,035 (Italy, France, Germany, Spain, UK, Portugal), sampled to match European general population 18+ years
Overall pessimism reached unprecedented levels, rising from the
COVID-19 period range of 30–32 to 38 percent in April 2022
Confidence in own country’s economic recovery after current crisis,1 % of respondents
20202 2021 2022
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6 “very pessimistic.” Top,
middle, and bottom 2 boxes of scale aggregated to "Optimistic, "Neutral", and "Pessimistic." Figures may not sum to 100%, because of rounding.
2. Average of biweekly pulse surveys shown for Mar–May 2020.
3. Question in Apr 2022 was not framed for coronavirus: What is your overall confidence level surrounding the potential economic impact related to the invasion of Ukraine that began in Feb 2022?

McKinsey & Company 13
33 35 35 38 42
52 51 49 50 44
14 14 16 12 14
Pessimism about economic recovery is high across countries and
more than doubled since October 2021
18
−17
25
−23
24
−19
19
−23
13
−19
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
1. Q: What is your overall confidence level surrounding the potential economic impact related to the invasion of Ukraine that began in Feb 2022? Rated from 1 “very optimistic” to 6 “very pessimistic.” Top, middle, and bottom 2 boxes of scale
aggregated to "Optimistic," “Neutral," and "Pessimistic.” Figures may not sum to 100%, because of rounding.
Confidence in own country’s economic recovery after current crisis1
% of respondents
Germany
Apr 12–18, 2022
Change in % pessimistic vs Oct 2021 survey,
percentage points
Change in % optimistic vs Oct 2021 survey,
percentage points
Optimistic: The economy will rebound
within 2–3 months and grow just as strong
as or stronger than before the current crisis
Neutral: The economy will be impacted for
6–12 months or longer and will stagnate or
show slow growth thereafter
Pessimistic: The current crisis will have
lasting impact on the economy and show
regression or fall into lengthy recession
Italy
Apr 12–18
UK
Apr 12–18
France
Apr 12–18
Spain
Apr 12–18, 2022

McKinsey & Company 14
High-income consumers are more confident about an economic
bounce after the invasion of Ukraine
38
50
12
Overall
Neutral
Optimistic
Pessimistic
Confidence in own country’s expected economic recovery after current crisis1
% of respondents
42 38 33
46
21
8
50
50
Low (<25K)
12
Middle
(25K–50K)
High (>50K)
26 35 38 45
64 47 46
50
18 16
Millennials
10
Gen Z Gen X
6
Baby boomers
By income2
By generation3
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years
1. Q: What is your overall confidence level surrounding the potential economic impact related to the invasion of Ukraine that began in Feb 2022? Rated from 1 “very optimistic” to 6 “very pessimistic.” Top,
middle, and bottom 2 boxes of scale aggregated to "Optimistic", "Neutral", and "Pessimistic“; Figures may not sum to 100%, because of rounding.
2. Income brackets shown in € apply to France, Germany, Italy, Spain; for UK, the same brackets were used with £.
3. Baby boomers includes silent generation.

McKinsey & Company 15
Four emerging consumer themes in April 2022
1
Sources of concern
The greatest concerns identified by
consumers in Italy, as across Europe,
are rising prices and the invasion of
Ukraine. With each concern cited by
32%, these have overtaken COVID-
19 as a top concern.
Of the two top concerns, rising prices
are disproportionately cited by
younger and lower-income
consumers, while the invasion of
Ukraine is more often cited by those
with high incomes
3
Price increases affecting
purchase intent
Consumers indicate they perceive
the highest price increases for
groceries and fuel, products also
associated with a strong increase in
spend
Spend on food and on energy,
transport, and fuel has grown
considerably and is expected to rise
further
4
Emerging demand shifts
25% of consumers, including 46%
of Gen Z, changed their retailer in
the last four to six weeks, while
44% changed brands for groceries
or another essential product
A trade-down trend is evident in
choices of retailers and brands,
especially for food, household
products, and skin care; the
strongest drivers of these choices
are price, value for money, and
availability
2
Confidence in economy
Optimism about an economic
recovery is at lower levels than it has
been throughout the COVID-19
pandemic (38% pessimistic versus
12% optimistic)
63% of consumers have a pessimistic
view of the Italy’s current economy,
an opinion that is even more likely
among those with low incomes (69%)
and those who say their top concern
is unemployment (76%) or rising
prices (69%)
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years

McKinsey & Company 16
Across the five countries surveyed, the vast majority of respondents
observed price changes
1. Q: In the last 4–6 weeks, have you seen a general change in the prices of any goods you commonly buy?
Inflation, year-over-year,
Mar 2022, %
7.6 5.1 7.0 6.8 9.8
7
93
11
89
12
88
10
90
6
94
Source: OECD (inflation data); McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK) sampled
to match European general population 18+ years
9
91
No
Yes
Germany UK Italy
France Spain
Price changes perceived in last 4–6 weeks1
% of respondents
Europe 5

McKinsey & Company 17
Majorities saw prices increases in every product category, with the
greatest impact in food and household supplies
1. Q: In the last 4–6 weeks, have you seen a general increase in the prices of any goods you commonly buy?
2. Q: In the last 4–6 weeks, How have you observed prices changing across the following categories? Rated from 1 "Prices decreased significantly" to 5 "Prices increased significantly.“
3. Calculated by subtracting all "decreased/significantly decreased" answers from all "increased/significantly increased" answers.
4
5
23
27
31
28
29
30
35
34
33
40
32
36
35
37
39
47
50
50
51
41
42
43
42
40
40
34
35
35
35
32
25
45
20
15
12
18
15
12
12
13
13
15
14
13
12
13
13
1
5
6
5
12
12
13
10
12
14
9
17
14
15
14
21
Apparel
Vitamins, supplements, and OTC medicine
1
2
2
1
Groceries/food for home
Pet food and supplies
Household supplies
2
2
Personal-care products
Kitchen and dining products
1
2
1
2
1
Skin care and makeup
1
1
Home improvement and gardening supplies
2
Fitness and wellness services
Home decoration and furniture
Footwear
Accessories
Sports and outdoors equipment, supplies
2
Jewelry
Consumer electronics
Increased
Decreased
Stayed the same
Not sure
Increased significantly
Price changes perceived in last 4–6 weeks
General price change perceived1
% of respondents
Price change perceived by category2
% of respondents who shopped category
10
90
Yes
No
Net change3
91
69
64
62
56
56
55
53
52
51
48
47
46
45
41
35
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years

McKinsey & Company 18
Majorities of consumers expect to spend less than usual across
most categories; groceries and gasoline are exceptions
8
18
34
38
40
41
41
41
56
48
31
20
13
34
43
38
37
28
35
16
17
13
12
18
10
13
11
9
12
14
15
12
12
14
11
10
Sports and outdoors
Food takeout and delivery
Tobacco products
Groceries
Restaurant
Alcohol
Apparel
Home improvement, garden
Toys and baby supplies
Accessories
Quick-service restaurant
Home and furniture
Footwear
Jewelry
Household supplies
Personal-care products
Skin care and makeup
Kitchen and dining
Decrease Stay the same Increase
13
20
12
33
35
46
26
29
33
14
24
37
26
39
44
49
48
43
17
18
10
8
16
13
12
16
11
60
29
17
40
13
15
15
13
16
Pet care services
Pet food and supplies
Out-of-home entertainment
Books/magazines/newspapers
Vitamins and OTC medicine
Entertainment at home
Consumer electronics
Fitness and wellness
Personal-care services
Gasoline
Vehicles
Short-term home rentals
Travel by car
Cruises
Hotel/resort stays
Adventures and tours
International flights
Domestic flights
-1
-25
-19
-33
-13
-12
-22
46
-20
15
-26
-29
-34
-36
-2
5
16
-10
-21
-27
-28
-21
-31
-26
-44
-39
-24
-12
-2
-23
-35
-27
-30
-21
Net change,3
next 4–6 weeks
3 0
-12
-7
-27
-26
-19
-11
-17
-21
30
-4
-19
11
-8
-18
-22
-25
-28 -25
Net change,3
last 4–6 weeks
-44
27
-19
-6
-31
-2
-17
-25
-28
-23
-31
-28
-38
1
-22
-25
-27
-18
Change, last
4–6 weeks2
Net change,3
next 4–6 weeks
Net change,3
last 4–6 weeks
Change, last
4–6 weeks2
1. Q: In the past 4–6 weeks, how has the amount you have spent on these categories changed? Possible answers: “spent less on this category,” “spent the same amount,” “spent more on this category.”
2. Q: Over the next 4–6 weeks, do you expect that you will spend more, about the same, or less money on these categories than usual? “Will spend less on this category,” “will spend about the same,” “will spend more on this category.”
3. Net change is calculated by subtracting the % of respondents stating they decreased spend from the % of respondents stating they increased spend in the respective category.
Net change > +15
Net change −15 to +15
Net change < −15
xx xx xx
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years
Change1 and net change2 of spend in categories in last or next 4–6 weeks
% of respondents who shopped category

McKinsey & Company 19
As spend on essential products rises, consumers save less and spend
less on nonfood discretionary items—and expect further cuts
1. Q: How have your household finances been affected over the past 4–6 weeks? Rated from 1 "Reduced a lot" to 5 "Increased a lot.“ “Last 4–6 weeks" refers to the change in behavior vs before the invasion of Ukraine.
2. Q: How do you expect your spend on the following categories to change in the next 4–6 weeks? Rated from 1 "Will spend significantly less" to 5 "Will spend significantly more.“ "Next 4–6 weeks" refers to the plan
consumers make today, so this change is incremental to past change.
3. Calculated by subtracting all "lower/much lower" answers from all "higher/much higher" answer in each column/time frame.
11
19
30
20
41
57
78
21
20 44
39
34
11
60
51
36
20
9
Rent/
mortgage
Energy/
utilities
Transport
and fuel
Food and
essentials
Nonfood
discretionary
Put money
into savings
Net change3
0 −21
16
41 21 −49 1 −19
17
43 22 −36
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
Higher Lower
About the same
12 17
27 20
43
51
75
23
24 42
32
34
13
60
49
37
24
15
Rent/
mortgage
Energy/
utilities
Transport
and fuel
Food and
essentials
Nonfood
discretionary
Put money
into savings
Change in spend in the last 4–6 weeks1 Expected change in spend in the next 4–6 weeks2
Change and expected change of spend in general categories
% of respondents

McKinsey & Company 20
Majorities of consumers report spend increases and expect further
increases in energy, transport and gasoline, and food
1. Q: How have your household finances been affected over the past 4–6 weeks? Rated from 1 "Reduced a lot" to 5 "Increased a lot.“ For visualization, we merged “increased a lot” and “increased,” as well as “reduced a lot” and “reduced.”
"Last 4–6 weeks" refers to the change in behavior vs before the invasion of Ukraine.
2. Q: How do you expect your spend on the following categories to change in the next 4–6 weeks? Rated from 1 "Will spend significantly less" to 5 "Will spend significantly more.“ For visualization, we merged “significantly more” and “more,” as
well as “significantly less” and “less.” "Next 4–6 weeks" refers to the plan consumers make today, so this change is incremental to past change.
3. Calculated by adding the blue highlighted cells, ie, increased past spend or expect to increase future spend, excluding consumers that have decreased or expect to decrease their spend.
Change of spend in general categories in last 4–6 weeks1 and expected
in next 4–6 weeks,2 % of respondents
Calculation example
Observed/expected price increase,³ % 23
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
Decrease No change Increase
Decrease 4 3 1
No change 4 63 6
Increase 2 7 10
Change of spend in
next 4–6 weeks, %
Change
in spend
in last
4–6
weeks,
%
Germany UK Italy
France Spain
25
66
62
69
34
19
21
55
55
53
25
9
31
76
60
62
26
9
15
62
50
41
23
10
21
53
50
52
25
10
Energy/utilities
Transport and gasoline
Food and essentials
Nonfood discretionary
Put money into savings
Rent/mortgage
Europe 5
23
62
55
55
27
12
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
Observed/expected price
increase,³ %

McKinsey & Company 21
All age groups expect prolonged and lasting inflation; between 34
and 48 percent plan to reduce or adapt consumption
63
56
48
34
15
I am planning to buy fewer products/services
in the future if prices continue to rise
I am concerned that the prices of everyday
purchases have been increasing
I believe prices will continue to rise
throughout the next 12 months
I have had to scale back my lifestyle
due to an increase in prices
I intend to use more “buy now, pay later”
services in the coming months
64 59 63 65
48 51 55 64
45 47 48 51
34 38 33 34
11 24 16
Statements Millennials Gen X
Gen Z
Baby
boomers2
Generational cut
Agreement with price-related statements1
% of respondents rating agreement at 5 or 6 on 6-point scale
Between −3 and +3
< −3 > +3
Difference from all consumers,2
percentage points
1. Q: Please read the following statements and indicate your level of agreement with each. Rated from 1 "Strongly disagree" to 6 "Strongly agree.“
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
All consumers
9
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years

McKinsey & Company 22
Consumers across generations increasingly focus on energy
consumption and transport costs to mitigate inflation effects
Change in purchase behavior in last 4–6 weeks1
% of respondents
1. Q: In which other areas of your life, if any, have you changed your shopping behavior in the last 4–6 weeks?
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years
Generational cut
Millennials Gen X
Gen Z
Baby
boomers2
59 46 51 62
44 33 28 33
26 31 21 20
25 23 15 20
13 13 19 15
8 15 10 18
13 9 10 15
5 10 7 9
9 11 5 5
4 10 4 8
5 7 4 5
8 8 5 2
9 7 3 2
3 13 17 16
All consumers
54
33
24
20
15
14
12
8
7
7
5
5
5
14
I have changed my mode of transport to use less gasoline/to save money
I have become more conscious about my home energy usage
I have reduced/stopped purchasing products from Russian companies
I have delayed/canceled a planned purchase of a car/other vehicle
I have stocked up on products (e.g., grocery or household items) that I use
often in the event that there are supply chain shortages
I have delayed/canceled a pending trip/vacation
I have purchased supplies to donate to the Ukraine
humanitarian effort and/or have donated money or time to volunteer
I have delayed/canceled a planned purchase of a new home
I have reduced/stopped purchasing products from companies
that have not taken a stance on the invasion of Ukraine
I have started/increased my purchase of products from
companies that have taken a stance on the invasion of Ukraine
I have offered to shelter/sponsor Ukrainian refugees
I have sped up my plan to purchase a new home
I have sold/plan to sell my car or other vehicle
None of these

McKinsey & Company 23
Four emerging consumer themes in April 2022
1
Sources of concern
The greatest concerns identified by
consumers in Italy, as across Europe,
are rising prices and the invasion of
Ukraine. With each concern cited by
32%, these have overtaken COVID-
19 as a top concern.
Of the two top concerns, rising prices
are disproportionately cited by
younger and lower-income
consumers, while the invasion of
Ukraine is more often cited by those
with high incomes
3
Price increases affecting
purchase intent
Consumers indicate they perceive
the highest price increases for
groceries and fuel, products also
associated with a strong increase in
spend
Spend on food and on energy,
transport, and fuel has grown
considerably and is expected to rise
further
4
Emerging demand shifts
25% of consumers, including 46%
of Gen Z, changed their retailer in
the last four to six weeks, while
44% changed brands for groceries
or another essential product
A trade-down trend is evident in
choices of retailers and brands,
especially for food, household
products, and skin care; the
strongest drivers of these choices
are price, value for money, and
availability
2
Confidence in economy
Optimism about an economic
recovery is at lower levels than it has
been throughout the COVID-19
pandemic (38% pessimistic versus
12% optimistic)
63% of consumers have a pessimistic
view of the Italy’s current economy,
an opinion that is even more likely
among those with low incomes (69%)
and those who say their top concern
is unemployment (76%) or rising
prices (69%)
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years

McKinsey & Company 24
v
One-third of consumers purchasing groceries and essentials have
switched to other retailers than normal in the last four to six weeks
70
33
25
21
20
14
13
13
12
Switch from online to a brick-and-mortar store
Switch to a different brand than normal
Total: Any new shopping behavior3
Shop from a different retailer/store than normal
Try a private label/store brand
New shopping method
Shop from a different website than normal
Try a new digital shopping method
(eg, ordered groceries via app)
Use a new shopping method
(eg, pickup and food delivery subscription)
Activities in last 4–6 weeks1
% of respondents
Plan to do activities in next 4–6 weeks2
% of respondents who did not do activity in
the last 4–6 weeks
1. Q: In the last 4–6 weeks, which of the following have you done when purchasing groceries and other essentials (eg, toiletries, cleaning products)?
2. Q: How likely are you to change your shopping behavior in the next 4–6 weeks when purchasing groceries and other essentials (eg, toiletries, cleaning products)? Rated from 1 "Not likely at all" to 6 "Extremely likely". "Extremely likely" and
"Likely" answers counted for planning this activity
3. Any new shopping behavior applies if a respondent has chosen at least 1 of the other categories mentioned.
Activities when shopping for groceries/essentials
38
11
10
17
10
8
14
9
9
91% of consumers noticed a price
increase when shopping for groceries
and essentials
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years

McKinsey & Company 25
70
33
25
21
20
14
13
13
12
Switch from online to a brick-and-mortar store
Shop from a different website than normal
Total: Any new shopping behavior3
Switch to a different brand than normal
Try a new digital shopping method
(eg, ordered groceries via app)
Shop from a different retailer/store than normal
Try a private label/store brand
Switched from brick-and-mortar store to online2
Use a new shopping method
(eg, pickup and food delivery subscription)
Seven in ten consumers shopping for groceries and essentials have
tried a new shopping behavior in the last four to six weeks
Generational cut
All consumers
Between −3 and +3
< −3 > +3
1. Q: In the last 4–6 weeks, which of the following have you done when purchasing groceries and other essentials (eg, toiletries, cleaning products)?
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
3. Any new shopping behavior applies if a respondent has chosen at least 1 of the other categories mentioned.
Activities when shopping for groceries/essentials in
last 4–6 weeks1
% of respondents
Difference from all consumers,2
percentage points
Gen Z Millennials Gen X Baby boomers
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years
85
46
26
25
27
19
18
16
19
82
45
27
26
25
24
19
23
20
69
29
26
20
19
11
10
11
10
57
23
22
16
15
7
10
5
6

McKinsey & Company 26
Many consumers shopping for groceries and essentials have
switched away from convenience stores and toward discounters
Retailer formats changed to in past 4–6 weeks1
% of respondents who shopped from a different retailer/store than normal in last 4–6 weeks
Retail format
18
4
34
17
25
21
18
24
37
35
37
59
34
34
33
25
20
8
12
7
Discounter
Specialty grocery store
Supermarket
Hypermarket
Convenience store
Did not shop there Shopped same amont
Shopped less Shopped more
1. Q: You mentioned that in the last 4–6 weeks you started shopping from a different retailer or store than you normally would when purchasing groceries and other essentials. How has
your shopping at the following types of retailers/stores changed?
2. Calculated by subtracting all "shopped less" answers from all "shopped more" answers.
25% of consumers changed their
retailer/store in the last 4–6 weeks
Net change2
4
2
−16
−25
−27
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years

McKinsey & Company 27
Consumers say that when seeking a new retailer/store for groceries
and essentials, they are most influenced by price and value for price
1. Q: You mentioned you shopped from a different retailer/store in the past 4–6 weeks when purchasing groceries and other essentials (eg, toiletries, cleaning products).What were the
main reasons you decided to try this new retailer/store? Respondents could choose up to 3 reasons.
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
Top reasons for choice of new retailer/store for groceries/essentials1
% of respondents who shopped from a different retailer/store than normal in last 4–6 weeks
Between −2 and +2
< −2 > +2
Difference from all
consumers,2
percentage points
25% of consumers changed their retailer/store in the last 4–6 weeks
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years
All consumers
50
38
23
22
17
15
13
12
11
9
9
8
7
7
6
6
5
2
I wanted to save on the cost of gasoline
Better prices/promotions
Family/friend recommendations
Better value for money
More easily accessible from my home
Better quality
Less crowded/has shorter lines
Supporting local businesses
Their response to the invasion of Ukraine
One-stop shop
More sustainable/environmentally friendly
Offers natural/organic offerings
Wanted variety/a change from normal
Shares my values
Cleaner/has better hygiene measures
Wanted to treat myself
Products are in stock
The company treats its employees well
46
33
19
21
17
19
13
16
13
13
7
11
13
13
9
1
6
7
Millennials
50
37
20
24
15
12
13
10
13
9
9
6
6
5
2
1
6
6
Gen X
45
55
19
26
23
6
16
13
10
10
10
10
6
6
3
6
3
10
Gen Z
58
37
32
19
18
18
12
10
5
7
10
5
3
1
5
3
10
3
Baby
boomers

McKinsey & Company 28
Large proportions of consumers shopping for groceries and other
essentials are trading down
24
30
32
39
39
40
40
45
43
40
48
6
7
7
5
8
8
10
7
10
14
8
70
63
61
56
53
52
50
48
47
46
44
Fresh fruit and vegetables
Frozen foods
Household products
Bread and bakery
Snacks and confectionary
Non-alcoholic beverages
Dairy and eggs
Hot drinks
Healthcare, beauty, baby
Fresh meat, fish, poultry
Alcohol
No change Switched to private label/lower-priced brand
Switched to higher-priced brand
1. Q: You mentioned that in the last 4–6 weeks you tried a different brand than you normally would when purchasing groceries and other essentials. Which of the following best describes how/where you switched brands?
2. Calculated by first adding up the answers for "switched to lower-priced or private-label brand" and then subtracting the answers for "switched to higher-priced brand" and "no change.“
Brand-switching behavior of consumers1
% of respondents who switched to a different brand for groceries or essentials in last 4–6 weeks
Net trade-down2
39
26
22
13
5
4
0
−3
−6
−7
−12
44% of consumers changed a groceries/essentials brand in the last 4-6 weeks
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years

McKinsey & Company 29
The strongest drivers of decisions to try new brands of groceries
and essentials are prices and value for price
1. Q: You mentioned you tried a new/different brand than what you normally buy in the last 4–6 weeks when purchasing groceries and other essentials (eg,
toiletries, cleaning products).What were the main reasons that drove this decision? Respondents could choose up to 3 reasons.
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years
Top reasons for choice of new brand for groceries/essentials1
% of respondents who bought a different brand than normal in last 4–6 weeks
Between −2 and +2
< −2 > +2
Difference from all consumers2,
percentage points
44% of consumers changed a groceries/essentials brand in the last 4–6 weeks
All consumers
51
46
15
15
13
13
12
12
11
10
9
8
8
5
5
4
3
3
Their response to the invasion of Ukraine
Wanted to try a new brand I found
Better value for money
Better prices/promotions
Wanted to try new type of product
More sustainable/environmentally friendly
Better quality
Cleaner/safer
Products are in stock
Larger package sizes
Is natural/organic
Supporting local businesses
Available where I’m shopping
Better shipping/delivery cost
Shares my values
Wanted variety/a change from normal
Wanted to treat myself
The company treats its employees well
43
37
21
17
14
8
19
16
17
11
9
10
7
10
6
2
4
3
Millennials
56
62
8
12
11
14
6
6
6
7
11
9
8
4
2
4
5
1
Gen X
44
38
20
20
20
10
18
18
12
12
8
8
12
2
4
6
4
8
Gen Z
61
46
13
11
10
20
6
9
8
13
8
4
6
3
3
1
8
3
Baby
boomers2

McKinsey & Company 30
Consumer countermeasures seem to correlate poorly with the
intensity of price increases by product category
Perception of price
increase and action
taken by consumers in
category
1. Q: In the last 4–6 weeks, how have you observed prices changing across the following categories? Rated from 1 "Prices decreased significantly" to 5 "Prices increased significantly.“
2. Q: In the last 4–6 weeks, have you done any of the following when purchasing [product]? Includes respondents who answered they switched to a different or lower-priced brand, delayed their purchase, switched to a different store or website,
purchased a smaller quantity.
Consumer-observed price
increase1
% of respondents rating price
change 4 or 5 on 5-point scale
Behavior change when price increase perceived2
% of respondents reacting to perceived price increase
No action
Delayed a purchase
Switched to a different brand
Switched to a higher-priced brand
Switched to a lower-priced brand
Switched to a different store/website
Purchased a larger size/quantity
Purchased a smaller size/quantity
Source: McKinsey & Company Italy Consumer Pulse Survey, 4/12–4/18/2022, n = 1,005, sampled to match Italy general population 18+ years
70
58
57
56
54
53
52
49
49
48
47
45
37
Fitness & wellness services
Jewelry
Skincare & make-up
Pet food & supplies
Kitchen & dining products
Home improvement & gardening supplies
Consumer electronics
Vitamins, supplements, and OTC medicine
Apparel
Home decoration & furniture
Footwear
Accessories
Sports & outdoors equipment & supplies
31
23
30
36
33
41
29
24
27
40
31
32
32
16
24
20
18
13
17
18
25
13
11
19
20
18
13
16
11
9
14
13
16
20
10
16
21
14
14
1
3
3
5
1
3
8
10
3
7
3
2
4
22
25
21
22
14
17
26
23
29
22
21
23
23
3
15
14
12
12
9
10
15
6
11
12
14
8
33
32
22
26
31
21
33
25
25
19
32
31
32
7
6
2
11
4
7
10
17
7
4
5
9
2

McKinsey & Company 31
Reason for trying a new brand in the past 4–6 weeks1
Net importance rating2
1. Q: In the last 4–6 weeks, when choosing a product or brand to purchase, how important to your purchase decision were the following factors that may be attributed to the product or brand? Rated from 1 "Not
important at all" to 6 "Extremely important.”
2. Calculated by subtracting the unimportant (rating of 1 or 2) value from the important (rating of 5 or 6) value.
“Rational”
Beliefs
Sustain-
ability
Among the Europe 5 consumers, those in Italy, along with Germany
and Spain, place a relative high emphasis on sustainability
Europe 5
27
21
11
9
1
54
45
24
43
32
5
1
-8
Small or neutral carbon footprint
Brand has stopped doing business in Russia
Locally sourced/locally owned
No artificial ingredients/natural/GMO free
Available in the store closest to me
Fair trade practices
Recyclable products, packaging, or initiatives
Sustainably sourced materials
Lower price
Brand has made public statements in support of Ukraine
Brand that I know and trust
Brand that treats employees well
Brand actively supports humanitarian effort in Ukraine
France Spain
UK Italy
Germany
34
22
14
12
9
54
49
21
40
29
-5
-13
0
29
16
7
2
-7
40
36
27
33
26
-13
-16
-22
6
14
2
-2
-6
63
47
1
40
27
9
11
-10
32
21
8
12
-4
44
36
31
40
32
5
-2
-3
35
33
22
22
12
66
57
40
60
48
23
17
11
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years